Golden Butterfly
| CAGR | 8.6% |
|---|---|
| Maximum drawdown | -17.3% |
| MAR ratio | 0.50 |
| History | 46 years (560 months) |
Golden Butterfly, designed by Tyler at Portfolio Charts, takes the Permanent Portfolio's economic risk parity idea and tilts it toward prosperity. It shares four of its five assets with the Permanent Portfolio - large-cap stocks, long-term treasuries, short-term treasuries, and gold - but splits what would be a single equity sleeve into two: large-cap blend alongside small-cap value. The result pairs the Permanent Portfolio's famous consistency with meaningfully better long-run growth.
Five equally weighted holdings:
- Prosperity (growth): US large-cap blend stocks
- Prosperity (value tilt): US small-cap value stocks
- Deflation: Long-term treasuries
- Recession: Short-term treasuries
- Inflation: Gold
Fixed allocation, rebalanced once a year every January, with no bands, no signals, and no defensive switches in between. It is one of the most consistently well-regarded risk-adjusted portfolios in the Portfolio Charts lineup - tight drawdowns and short recovery times paired with a growth path that historically outpaces a plain 60/40 balanced fund.